Pros & Cons of Using RFID Tracking for Inventory Management

RFID Inventory Tracking

Knowing inventory status is important for inventory management. In order to manage inventory efficiently, inventory tracking is important, and this is where asset tracking methods are used. Although there are several types of asset tracking methods are available such as Barcode, QR Code, NFC & BLE. But in this blog, we will be focusing on RFID inventory tracking & how RFID tags are important for inventory management & what are the advantages and disadvantages of RFID tags for inventory management! So, without wasting any time let us begin.

What Is RFID Asset & Inventory Tracking?

RFID is one of the most used asset tracking methods. RFID tags are helpful in providing the real-time location of assets. It increases the efficiency of the equipment.

It is a profoundly flexible innovation with applications all through business - from controlling assembling cycles to upkeep and review of gear, overseeing resources, and the following merchandise through to conveyance.

RFID asset tracking frameworks offer advantages for organizations, all things considered, permitting them to quickly further develop effectiveness and decrease cost via robotizing measures and further developing the use of resources and quality.

According to Markets and Markets,  “The global RFID market is estimated to be USD 10.7 billion in 2021 and projected to reach USD 17.4 billion by 2026; at a CAGR of 10.2%”

What Are the Advantages of RFID Technology in Inventory Management?

The advantages of RFID technology in Inventory Management are discussed below:

1. Multiple Tag Scanning

You can scan multiple RFID tags in a single move with a scanner. It leads to fast reading. It is helpful in increasing productivity, saves time, and operation speed increases as well. You will not have scan tags again and again.

2. Track Asset and Inventory

One of the most basic advantages of RFID technology is keeping track of assets and inventory. It is essential to keep track of assets as it saves assets from pilferage, theft, or misplacement.

With RFID you can keep track of the condition of inventory as well. As the system alerts the team about when inventory will expire.

3. Automated Process

RFID speeds up the process and allows you to manage inventory efficiently. It helps in tracking the movement of an asset and eliminates the needs of the spreadsheet. It helps in saving money and time because of automation.

4. Better Accuracy

Since the process is automated & the manual data is eliminated. The data is recorded in an automated way as a result accuracy is improved and error chances are minimized.

What Are the Benefits of RFID Tags?

The benefits of RFID tags are discussed below:

1. Durability

RFID tags have long durability and are not hampered by the environment because they have long durability. It has plastic covered which saves from external factors.

2. Read & Write Capabilities

RFID tags can read-write data and they can be programmed for specific usage which can give your business an upper hand.

3. Data Security

RFID tags are very helpful in keeping data secured. As the data is kept in encrypted form so hackers cannot hack data.

How Do RFID Tags Help in Inventory Tracking & Management?

We have discussed below how RFID tags help in inventory management:

In huge warehouses, there are so many inventories and employees spend a lot of time finding specific inventory. It leads to unnecessary wastage of time and productivity decreases. But when you have RFID tags, they are helpful in proving accurate location of inventory, and their time is saved, and productivity increases as well.

Inventory theft is one of the most common issues. Infizo Stock helps in keeping track of inventory and keeping them secured sometimes inventory is kept here and there & that is when it gets misplaced. So, Infizo Stock tags help in finding them easily.

Infizo Stock automates the process, retrieves information easily, and eliminates the manual process. Infizo Stock tags increase accuracy by eliminating traditional inventory tracking methods.

Either you have an online business or a general store, but it is important that you know about your stock. Lots of businesses do not when their stock goes out.

RFID is helpful in avoiding RFID tags & the system can alert when inventory goes below-defined levels.


For organizations hoping to take on an inventory management solution, it is important to conduct a detailed examination of technologies such as barcode tag, Infizo Stock tags, QR Code tags, NFC labels intended for inventory control.

These tags are helpful in the effective management of inventory. RFID has a few drawbacks as well such as it is not cost-effective compared to the barcode. However, RFID tags can assist in accomplishing better return on investment (ROI) for your venture.

For some organizations, barcode technology can be brilliant and pragmatic decisions, but RFID technology is more advanced and can play a crucial role in inventory tracking.

Infizo Stock tags can be a game-changer for your organization when they are used with inventory management software.

Frequently Asked Questions (FAQs)

1. Why RFID is essential?

It is fast working technology that can be helpful to those businesses that have a lot of inventories. RFID decreases labor work and increases productivity. It enhances the efficiency of the organization and boosts the bottom line as well.

2. What are the disadvantages of RFID?

Disadvantages of RFID are given below:
1. It is a complex technology, and it is expensive because active tags use a lot of batteries.
2. RFID has a limited range of a maximum of 2-3 meters.
3. RFID technology implementation can be time-consuming.

3. How RFID technology is helpful to the retail industry? What other industries use this technology?

According to Wikipedia,  “To prevent retailers diverting products, manufacturers are exploring the use of RFID tags on promoted merchandise so that they can track exactly which product has sold through the supply chain at fully discounted prices.”

Industries that utilize RFID technology are retail, eCommerce, Hospitals, Manufacturer, etc. All those industries which are inventory and asset-intensive can utilize RFID technology.

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